This paper examines whether in analysis of the impact of monetary policy, the exchange rate can play a role along with the interest rate as a transmission mechanism of monetary policy effects on economic variables or not? For this purpose, the general dynamic stochastic equilibrium models were used in the form of a New Keynesian small open macro-economy. This model was designed for Iran's economy by considering oil-based economy's and the currency substitution Existence. Then, its calibration and simulation was conducted with currency substitution Existence. Then, its calibration and simulation was conducted with univariate and multivariate recognition of Markov Monte Carlo chain and analysis of the model impulse responses showed that in Iran's economy, the exchange rate plays a role along with the interest rate as a monetary transmission mechanism.

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